Toda Corporation · TSE:1860
Toda — Q2 FY2019 Earnings Presentation
39 slides from Toda's earnings presentation, Nov 12, 2019
Slide 1: Results Briefing for the Second Quarter Ended September 30, 2019
Results Briefing for the Second Quarter Ended September 30, 2019 November 12, 2019 TODA CORPORATION 1
Slide 2: 2
2
Slide 3: Forward-looking statements
This report contains forward-looking statements regarding Toda Corporation and the Group’s corporate plans, strategies, and business forecasts. These statements include Toda Corporation’s forecasts based on information currently available as of the announcement date, which are subject to a number of
Slide 4: Today's Schedule
Today’s Schedule 1. Summary of Financial Results Executive Manager Yushi Kikutani 2. Issues and Initiatives President Masanori Imai 4
Slide 5: 1. Summary of Financial Results
1. Summary of Financial Results Executive Manager Yushi Kikutani 5
Slide 6: 1-1. Summary of Financial Results for the Second Quarter
1-1. Summary of Financial Results for the Second Quarter Ended September 30, 2019 6
Slide 7: Highlights: FY2019 1H
Highlights: FY2019 1H Consolidated net sales: ¥235.3 billion, up 15.9% year-on-year ： Consolidated net sales rose by 15.9% year-on-year to ¥235.3 billion due to progress in works in hand for domestic architectural construction and civil engineering and to increased net sales in domestic Group comp
Slide 8: Summary: FY2019 1H
Summary: FY2019 1H (Billions of yen) Apr-Sep FY2019 Apr-Sep Forecasts at Change FY2018 the beginning Actuals (year on Difference of the term (vs. forecast) year) Consolidated net sales 203.0 241.0 235.3 15.9% -5.6 Operating income 10.3 11.8 15.5 50.8％ +3.7 Ordinary income 11.8 12.8 16.9 42.6% +4.1 P
Slide 9: Main Orders Received
Main Orders Received Ordering Parties Name of Works Urban Renewal Association for New construction work for facilities for first phase of Shindaikumachi District urban renewal works for Shindaikumachi District Architectural Construction FORETSEINE Co., Ltd. New construction work in Yoyogi-Tomigaya R
Slide 10: 1-2. Details of Financial Results
1-2. Details of Financial Results 10
Slide 11: (Consolidated) Toda Group
(Consolidated) Toda Group 23 Business Subsidiaries in Japan Overseas Subsidiaries companies APEC Engineering Co., Ltd. Construtora Toda do Brazil S/A Chiyoda Kenkou Co., Ltd. Thai Toda Corporation Ltd. 12 Construction Toda Road Co., Ltd. Toda Vietnam Co., Ltd. companies Sato Kogyo Co., Ltd. TOBIC 2
Slide 12: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated SG&A ratio 7.5% 20.0 8.0% 7.3% 6.8% 15.0 15.9 6.0% 14.9 14.1 13.6 13.4 12.2 10.0 4.0% 5.0 2.0% 0.0 0.0% Sep-17 Sep-2018 Sep-2019 12
Slide 13: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets Assets (Billions of yen) Liabilities and Net Assets (Billions of yen) −27.3 −27.3 Short-term loans +15.8 667.7 667.7 Advances received on uncompleted construction 640.4 contracts +8.7 640.4 Commercial papers −25.0 Construction-related assets +9.5 Notes and accounts Cash
Slide 14: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei Stock Average (Billions of yen) Stock prices (yen) 300.0 25,000 21,454 21,755 21,205 250.0 18,909 20,000 200.0 174.7 178.6 173.3 168.7 15,000 150.0 Valuation Difference 96.1 96.7 91.1 89.7 10,000 100.0 5,000 50.0 B
Slide 15: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Short-term Long-term （Billions of yen） 132.0 125.2 52.5 Long-term 49.8 75.4 70.2 40.4 49.9 79.4 Short-term 75.3 29.8 25.4 Mar-17 Mar-18 Mar-19 Sep-19 D/E ratio 0.45x 0.43x 0.68x 0.62x 15
Slide 16: (Consolidated) Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts Architectural construction Civil engineering Overseas Total 5.0 (Billions of yen) 4.0 −0.18 3.6 3.41 3.0 Overseas Overseas 2.0 3.27 2.89 Civil Civil engineering 1.0 engineering 0.44 Civil 0.44 0.26 Architectural Architectural engi
Slide 17: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) ＋5.6 Cash and cash Notes and accounts receivable – trade 45.7 Income before income taxes 18.1 equivalents at Advances received on uncompleted Cash and cash beginning of construction contracts 8.7 equivalents at period Notes and accounts payable
Slide 18: 1-3. Performance Forecasts
1-3. Performance Forecasts 18
Slide 19: Forecasts for FY2019 (Year Ending March 31, 2020)
Forecasts for FY2019 (Year Ending March 31, 2020) (Billions of yen) FY2019 FY2018 Change Forecasts (year-on-year) Consolidated net 510.4 520.0 1.9% 9.5 sales Operating 34.5 30.7 −11.1％ −3.8 income Ordinary income 37.4 32.8 −12.5％ −4.6 Profit attributable to owners of the parent 25.5 22.8 −10.9％ −2.7
Slide 20: (Non-consolidated) Forecasts for the Construction Business
(Non-consolidated) Forecasts for the Construction Business (Billions of yen) (%) Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts 2.2 Overseas Overseas Civil 155.8 7.0 4.5 6.0 Engineering Civil 17.7 Civil 115.0 Eng
Slide 21: Non-consolidated Forecasts for FY2019
Non-consolidated Forecasts for FY2019 Amount (billions of yen) Profitability (%) Net sales 471.5 Gross profit 60.0 12.7 Profits in the construction business 56.4 12.2 [Domestic architectural construction] [39.0] [11.5] [Domestic civil engineering] [17.0] [14.5] [Overseas] [0.4] [6.7] Profits in inve
Slide 22: 22
22
Slide 23: 2. Management Plan Progress Status
2. Management Plan Progress Status President Masanori Imai 23
Slide 24: Positioning of Medium-term Management Plan 2019
Positioning of Medium-term Management Plan 2019 Toda Group Global Vision A corporate group that makes your success possible Establish a foundation to realize the global vision FY2015 – FY2016 FY2017 – FY2019 FY2020– Phase I Phase II Establishing Building profit base for Continuous growth foundation
Slide 25: 2-1. Business/Performance Forecast
2-1. Business/Performance Forecast 25
Slide 26: Net Sales and Operating Income by Business
Net Sales and Operating Income by Business No change from the initial forecast (Billions of yen) Upper: Net sales FY2019 Medium-term targets Lower: Operating income FY2018 Actuals （FY2019） Forecast Domestic architectural 355.0 340.0 340.0 construction 24.7 7.0% 18.3 5.4% 16.5 Domestic civil 99.0 117
Slide 27: Change in Construction Work Carried Forward
Change in Construction Work Carried Forward Continued high level results due to orders received for major civil engineering works Domestic Architectural Construction Domestic Civil Engineering 507.4 459.7 454.3 250.8 229.4 (Billions of yen) 177.1 Sep-17 Sep-18 Sep-19 Sep-17 Sep-18 Sep-19 27
Slide 28: Construction Work Carried Forward by Construction Category
Construction Work Carried Forward by Construction Category Deepening main key fields by developing proprietary technology Domestic Architectural Construction (%) Domestic Civil Engineering (%) Other 2.0 Accommodations 5.9 Warehousing and Tunnels distribution 6.0 22.3 Other Offices 29.7 24.6 Roads Co
Slide 29: Shareholder Returns
Shareholder Returns Total shareholder returns・ total return ratio Total purchase of treasury stock Total annual dividends Total return ratio 10.0 34.2 40 29.6 Mid-term 8.0 24.0 30 (Billions of yen) 23.8 target: 2.50 approx. 30% 0.0 （％） 6.0 20 0.01 4.0 10 6.1 6.1 6.7 2.0 4.6 0 0.0 (10) FY2016 FY2017
Slide 30: 2-2. Issues and Initiatives
2-2. Issues and Initiatives (Toward the Next Medium-term Management Plan) 30
Slide 31: Awareness of Issues
Awareness of Issues Pursuing safety and productivity Current Maintaining the foundation for strategic business and implementing the strategic business Creating global-level business Mid- to opportunities Long-term Diversifying business and securing return on investment Improving corporate
Slide 32: Setting Up the Globalization Promotion Office
Setting Up the Globalization Promotion Office （Sep 2019） Organization building and human resource development enabling us to be globally competitive Promoting an Human resource enhancement of value and committee competitive ability by Languages, cross-functionally Employment, Training overlooking
Slide 33: Setting Up International Branches
Setting Up International Branches（Sep 2019） Deepening collaboration within the organization and strengthening operations/governance (Business collaboration (Domestic President ・・・ Branch globalization Building Branches) Construction Group Civil Engineering Group ※New Administrative International Gro
Slide 34: Investment Plan Progress Status
Investment Plan Progress Status Promoting initiatives in new areas to diversify business FY2019 investment breakdown (%) ¥78.0 billion 11.3 Approximately Technology FY2019 34.0 billion yen and ICT Forecast (Initial forecast: ¥31.0 billion) 7.6 17.7 New fields Investment & 33.0 development FY2018 Act
Slide 35: Investments in the First Half of FY2019
Investments in the First Half of FY2019 *Purchased two towers Serviced Apartments in Jakarta Accommodation facility in Kyoto (Riverte Kyoto Kamogawa) Securing stable income and Promotion of in diversification of the promoting redevelopment in the TODA Group (Towa Kanko kaihatsu future Co., Ltd.)
Slide 36: Promotion of Issue-Solution Business
Promotion of Issue-Solution Business Contributing to sustainable growth of society, customers, and the Group Solving social issues society and customers Energy problems Climate (Creating a sustainable society) Improving value of change Aging Urbanization society Poverty Water/food shortages Informat
Slide 37: Developing Branding Activities
Developing Branding Activities Company-wide activity to achieve stakeholders’ success Providing Excitement & expectation value Consultation at hospitals Global Vision （OUTPUT） & schools Customers A corporate group that makes your Traditions Significance Va r i o u s success possible Trust targets Di
Slide 38: Toward Sustainable Growth
Toward Sustainable Growth Consolidated Operating Creating a business net sales income ratio （％） promotion structure that (Billions of yen) continuously 700.0 7.1 8.0 6.8 creates/provides value, 5.9 5.9 taking advantage of the 600.0 6.0 shift to the VUCA era Target: 5.0 Implementing 500.0 4.0 div
Slide 39: A corporate group that makes your success possible
A corporate group that makes your success possible 39